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KPCB INTERNET TRENDS 2016 |
PAGE 3 Thanks... KPCB Partners Especially Alex Tran / Dino Becirovic / Alexander Krey / Cindy Cheng who helped develop the ideas / presentation we hope you find useful... Hillhouse Capital Especially Liang Wu...his / their contribution of the China section of Internet Trends provides an especially thoughtful overview of the largest market of Internet users in the world... Participants in Evolution of Internet Connectivity From creators to consumers who keep us on our toes 24x7...and the people who directly help us prepare this presentation... Kara & Walt For continuing to do what you do so well...

KPCB INTERNET TRENDS 2016 |
PAGE 67 Hyper-Targeted Marketing = Driving Growth for Retailers / Products / Brands Internet = Driving Force for New Product Introductions with Hypertargeting / Intent-Based Marketing via Facebook / Twitter / Instagram / Google... Combatant Gentlemen ‘Our customer acquisition strategy was Facebook. Our [target customer] typically spends a lot of time on Facebook...Every $100 we spent on Facebook was worth $1,000 in sales. For us, it was a simple math equation.’ ‘We target based on [Facebook] likes...For example, we have a lot of guys in real estate who are climbing up the ladder. What we do is we put these guys into cohorts and we say, ‘These are our real estate guys.’ - Vishaal Melwani CEO and Founder, Combatant Gentlemen Stance After noticing that its Instagram placements were outperforming all other placement types in its Star Wars collection launch campaign, Stance decided to create a dedicated ad set to maximize its ad spend against this placemen & build upon Instagram’s unique visual nature and strong targeting capabilities. Stance targeted the ads to adults whose interests include the Star Wars movies, but excluded those interested only in specific Star Wars characters. The ‘Sock Wars’ campaign generated an impressive 36% boost to return on ad spend. Source: One Million by One Million Blog, Instagram Business Image: Pinterest.com, Instagram Business

KPCB INTERNET TRENDS 2016 |
PAGE 74 Source: “Engaging and Cultivating Millennials and Gen Z,” Denison University and Ologie, 12/14. Note: Gen Z defined in this report as those born after 1995. In 2016 they are ages 1-20. Note that there may be different opinions on which years each generation begins and ends. Generation Z (Ages 1-20) = Communicates with Images Gen Z Tech Innate: 5 screens at once Communicate with images Creators and Collaborators Future-focused Realists Want to work for success vs Attributes – Millennials vs. Gen Z Millennials Tech Savvy: 2 screens at once Communicate with text Curators and Sharers Now-focused Optimists Want to be discovered

KPCB INTERNET TRENDS 2016 |
PAGE 87 How Often are You Able to Watch a Game (on Sidelines or TV) with All Your Friends Who Share Your Team Love? Live Streaming – Wrapped with Social Media Tools – Helps Make that More of a Reality...

KPCB INTERNET TRENDS 2016 |
PAGE 96 Source: Houzz ...Houzz Personalized Planning with Images = 3-4x Higher Engagement...5x Higher Purchase Conversion View In My Room (2/16 Launch) Pick a Product & Preview What It Looks Like In Any Room Through Camera 50% of Users Who Made a Purchase in Latest Version of Houzz App (Since 2/17/16) Used View In My Room Users = 97% More Likely to Use Houzz Next Time They Shop...5.5x More Likely to Purchase... Spend 3x More Time in App Sketch (12/15) Add Products from Houzz Marketplace to Any Photo on Houzz or Your Own Sketch Over 500K Sketches Saved Since Launch Sketch Users = 5x More Likely to Purchase... Spend 4x More Time in App

KPCB INTERNET TRENDS 2016 |
PAGE 117 Person to Machine (P2M) Voice Interaction Adoption Keys = 99% Accuracy in Understanding & Meaning + Low Latency Source: Andrew Ng, Chief Scientist, Baidu Note: P2M = person to machine. As speech recognition accuracy goes from say 95% to 99%, all of us in the room will go from barely using it today to using it all the time. Most people underestimate the difference between 95% and 99% accuracy – 99% is a game changer... No one wants to wait 10 seconds for a response. Accuracy, followed by latency, are the two key metrics for a production speech system... ANDREW NG, CHIEF SCIENTIST AT BAIDU

KPCB INTERNET TRENDS 2016 |
PAGE 150 Global Perspective on Auto Industry Future – By Region, per Morgan Stanley Auto & Shared Mobility Research Source: ‘Global Investment Implication of Auto 2.0,’ Morgan Stanley Research, 4/19/16, led by Adam Jonas N. America – Some home field advantage on tech innovation & early application of shared mobility, but culture of private ownership and litigious USA judicial system may slow progress. China – Government focus on technology / environment, as well as quality of ride-sharing companies (esp. Didi), have driven strong early sharing adoption. Competing investment in public transit and impact of car ownership on social standing may impede full-scale adoption. India – Offers all key ingredients (rapid urbanization, limited public infrastructure, large millennial population, internet inflection point) for shared mobility leadership. Current market structure is likely to change as shared mobility gains dominance, so future remains unclear. Europe – Lack of homegrown tech champions coupled with power of OEMs (particularly Germans) and quality of European public transit may make adoption more difficult. High fuel costs and strong emissions standards may drive movement forward. Japan – Social implications of an aging population and policy support (given importance of a strong automotive industry) represent key advantages, but OEM buy-in to new paradigm is crucial, and R&D investment in tech arena lags somewhat behind other geographies. Korea – Strong technological culture, early political support and sharing-focused younger demographic leaves Korea relatively well positioned for move to shared mobility, though adoption remains in its infancy.

KPCB INTERNET TRENDS 2016 |
PAGE 152 Re-Imagining Automotive Industry = From Cars Produced to Miles Driven? We do believe the traditional ownership model is being disrupted...We’re going to see more change in the next five to ten years than we’ve seen in the last 50. You could say there would be less vehicles sold, but we’re changing our business model to look at this as vehicle miles traveled...I could argue that with autonomous vehicles, the actual mileage on those vehicles will accumulate a lot more than a personally owned vehicle. Source: Mary Barra (General Motors), Mark Fields (Ford), Wall Street Journal MARY BARRA, GM CEO, 10/25/15 MARK FIELDS, FORD CEO, 4/12/16

KPCB INTERNET TRENDS 2016 |
PAGE 159 Automotive Industry Golden Age, Take Two? What if a Car: • Is part of a network that provides a commuting service that comes to you? • Is the most advanced computing device you use? • In effect, is an on-demand cash generator, boosted by car / ride sharing? • Gives you safe driving pay-backs from your insurer? • Is safer, due to automation / reduced human error? • Drives itself? Parks itself? • Makes you want to commute? • Makes you more productive?

CHINA = INTERNET LEADER ON
MANY METRICS *Disclaimer – The information provided in the following slides is for informational and illustrative purposes only. No representation or warranty, express or implied, is given and no responsibility or liability is accepted by any person with respect to the accuracy, reliability, correctness or completeness of this Information or its contents or any oral or written communication in connection with it. A business relationship, arrangement, or contract by or among any of the businesses described herein may not exist at all and should not be implied or assumed from the information provided. The information provided herein by Hillhouse Capital does not constitute an offer to sell or a solicitation of an offer to buy, and may not be relied upon in connection with the purchase or sale of, any security or interest offered, sponsored, or managed by Hillhouse Capital or its affiliates. Hillhouse Capital* Provided China Section of Internet Trends, 2016